After 45 years, new look for American Airlines

January 17, 2013 - 8:38 PM

After 45 years, new look for American Airlines

American Airlines will emerge from bankruptcy with a new logo in red, white and blue. Tom Horton, the airline's chairman and chief executive, announced the changes, saying the modern livery reflects upgrades that are being made to the planes and the interiors. "You've been hearing a lot about how the modern travel experience is going to feel, and today we are going to show you how it's going to look," he said in an online video. American's old look -- polished silver with a red and blue "AA" on the tail -- dated to 1968.

Initial jobless claims fall to lowest in 5 years

The number of Americans filing first-time claims for unemployment insurance payments fell more than forecast last week to the lowest level in five years, pointing to further improvement in the labor market. Applications for jobless benefits decreased by 37,000 to 335,000 in the week ended Saturday, the lowest level since the period ended Jan. 19, 2008, Labor Department figures showed. A spokesman for the agency said the drop may reflect the difficulty the government has in adjusting the data after the holidays when seasonal workers are let go. The four-week moving average of claims, a less-volatile measure, dropped to 359,250 from 366,000.

AT&T to take $10B charge over pension plan

AT&T Inc., the largest U.S. phone company, is recording a $10 billion fourth-quarter charge for its pension plan and said smartphone subsidies put pressure on profit in the period. The company lowered its expected long-term rate of return for the pension to 7.75 percent, citing "continued uncertainty" for the stock market and the U.S. economy, according to a filing. AT&T, slated to report its full earnings on Jan. 24, said it sold about 10.2 million smartphones last quarter. The high subsidies it doles out on these devices squeezed profit in the period, the Dallas-based company said. Hurricane Sandy and other storms also hurt earnings, lowering fourth-quarter operating income by $175 million.

As Rio Tinto writes down, CEO steps down

Rio Tinto Group, the second-biggest mining company in the world, will take about $14 billion of write-downs for failed deals in aluminum and coal led by Chief Executive Tom Albanese, who departs after almost six years in charge. Albanese, 55, is leaving as a result of the $38 billion takeover of Alcan in 2007, a deal that soured as China's emergence as the largest aluminum producer left Western rivals few markets to chase. The board picked Sam Walsh, 63, head of Rio's iron ore unit, to turn around the London-based company.

Pfizer division plans initial public offering

Zoetis Inc., the animal-health unit of Pfizer Inc., is seeking as much at $2.2 billion in an initial public offering. Pfizer is offering 86.1 million shares for $22 to $25 each, Zoetis said in a regulatory filing. The midpoint of the range would value the Madison, N.J.-based company at $11.8 billion, or about 26 times earnings in the 12 months through Sept. 30. The IPO is scheduled to price Jan. 31, according to data compiled by Bloomberg.

30-year mortgage rates still near record lows

U.S. mortgage rates were little changed, keeping borrowing costs close to record lows as home values climb after the worst slump since the Great Depression. The average rate for a 30-year fixed mortgage was 3.38 percent in the week ended Thursday, down from 3.4 percent, Freddie Mac said. The average 15-year rate held at 2.66 percent. Low borrowing costs are spurring buyer demand while tight inventories of properties on the market bolster prices.